"Management will not disappear, but for the first time, it will be built on the foundation of intelligence rather than the ruins of biology."

"As management retreats, cognition rises." "When new species meet old containers, KPIs collapse!" These are the latest insights shared by Chen Tianqiao, founder of Shanda Group and Tianqiao and Chrissy Chen Institute.

In a recent article titled *The Twilight of Management and the Dawn of Intelligence—Rewriting the Biological Genes of Enterprises*, Chen proposed a groundbreaking idea: the future enterprise will no longer be led by humans directing intelligence, but rather by intelligence augmenting humans.

Chen emphasized, "Management will not vanish, but it will finally be grounded in intelligence (Intelligence) rather than biology (Biology)."

Chen has been deeply contemplating artificial intelligence (AI) and is preparing more philosophically reflective discussions on the topic.

**The "New Species" of Cognition** In his latest piece, Chen argues that with the emergence of AI agents possessing advanced cognitive abilities, the biological foundations of traditional management—rooted in human brain limitations—will be overturned. Enterprises must fundamentally reshape their organizational DNA, shifting from a "human-centric" management paradigm to an "AI-native" cognitive paradigm.

He views traditional management as a "corrective system" designed to compensate for human cognitive shortcomings—such as limited memory, bandwidth, and motivation. When the primary workforce shifts from humans to AI agents with eternal memory, holographic cognition, and endogenous evolution, this system collapses. The future transformation is not about optimizing management with AI but allowing "management" itself to retreat, making way for a new organizational form based on cognitive traits of intelligent agents—the "AI-native" enterprise.

"When execution relies on humans, enterprises are institutional containers built to accommodate brain deficiencies," Chen stated. He believes AI agents will disrupt existing corporate management at the "cognitive anatomy" level.

From this perspective, Chen compared human employees and AI agents, highlighting three key differences: 1. **Memory Continuity** (eternal memory vs. fleeting fragility) 2. **Cognitive Holography** (full alignment vs. hierarchical filtering) 3. **Endogenous Evolution** (reward-model-driven vs. dopamine-driven)

These comparisons underscore AI agents' advantages—possessing "continuous memory, holographic cognition, and self-evolving capabilities." Chen remarked, "This isn’t about stronger employees; it’s a new species operating under different physical laws."

**The Collapse of Traditional Systems** "When new species meet old containers, KPIs collapse!" Chen explained, "We needed KPIs because humans tend to lose their way. But for AI agents that constantly lock onto objective functions, rigid KPIs restrict their ability to explore better solutions in infinite problem spaces. It’s like forcing a self-driving car onto a fixed track while expecting it to avoid sudden obstacles."

Meanwhile, traditional processes and oversight systems are also crumbling, shifting from "error correction" to "redundancy." Chen noted that conventional supervision was designed to prevent human mistakes, but for AI agents, understanding equals execution, and perception equals action. Supervision no longer stems from distrust in execution but from recalibrating goal definitions.

**The Ultimate Form: "AI-Native" Enterprises** Chen outlined five defining traits of AI-native enterprises: 1. **Architecture as Intelligence** – Enterprise design shifts from "risk control" to "maximizing data throughput and emergent intelligence." 2. **Growth as Compound Interest** – Valuation logic depends on the speed of cognitive compounding, not headcount. 3. **Memory as Evolution** – Enterprises require a long-term, rewritable memory hub where decision logic, interaction history, and tacit knowledge are vectorized in real time, forming the organization’s "subconscious." 4. **Execution as Training** – Every department functions as a "model training unit," with each business interaction serving as a Bayesian update to the internal "world model." 5. **Humans as Meaning** – Humans transition from being "fuel" to becoming "intent curators" and "cognitive architects."

Chen’s article arrives as AI reshapes corporate operations globally. On December 1, Accenture announced plans to equip tens of thousands of IT professionals with ChatGPT Enterprise through its OpenAI partnership, accelerating AI upskilling across roles.

Recent studies highlight AI’s impact on organizational structures. Management Consulted notes reduced demand for generalist analysts as AI handles foundational data, shifting talent needs toward mid-career specialists. Alvarez & Marsal proposes a "box model," where senior and junior employee ratios balance as firms rely more on experienced professionals than junior analysts—AI enhances analytical capacity while reducing entry-level demand.